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    Oracle Loans Presentation

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    Sridhar Mamidipally
    The document discusses Oracle's Loans module and lessons learned from implementing it. It summarizes how Loans integrates with other Oracle financial modules like Accounts Receivable, Accounts Payable, and General Ledger. It also covers how Loans generates income through fees and interest billing, and generates disbursements. Key dates, schedules, conditions, approvals, and the restructuring process are described. The document provides guidance on updating loans and considerations for data conversion. It concludes with contact information for follow up questions.

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    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd

    Oracle Loans Presentation

    Uploaded by

    Sridhar Mamidipally
    757 views29 pages
    The document discusses Oracle's Loans module and lessons learned from implementing it. It summarizes how Loans integrates with other Oracle financial modules like Accounts Receivable, Accounts Payable, and General Ledger. It also covers how Loans generates income through fees and interest billing, and generates disbursements. Key dates, schedules, conditions, approvals, and the restructuring process are described. The document provides guidance on updating loans and considerations for data conversion. It concludes with contact information for follow up questions.

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    The document discusses Oracle's Loans module and lessons learned from implementing it. It summarizes how Loans integrates with other Oracle financial modules like Accounts Receivable, Accounts Payable, and General Ledger. It also covers how Loans generates income through fees and interest billing, and generates disbursements. Key dates, schedules, conditions, approvals, and the restructuring process are described. The document provides guidance on updating loans and considerations for data conversion. It concludes with contact information for follow up questions.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    757 views29 pages

    Oracle Loans Presentation

    Uploaded by

    Sridhar Mamidipally
    The document discusses Oracle's Loans module and lessons learned from implementing it. It summarizes how Loans integrates with other Oracle financial modules like Accounts Receivable, Accounts Payable, and General Ledger. It also covers how Loans generates income through fees and interest billing, and generates disbursements. Key dates, schedules, conditions, approvals, and the restructuring process are described. The document provides guidance on updating loans and considerations for data conversion. It concludes with contact information for follow up questions.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 29
    At a glance
    Powered by AI
    The key takeaways from the document are how Oracle Loans integrates with modules like Accounts Receivable, Accounts Payable and General Ledger to manage the loan lifecycle from approval to repayment. It also discusses how Oracle Loans generates income through interest and fees and manages the approval workflow.

    Oracle Loans integrates with other Oracle Financial modules like Accounts Receivable, Accounts Payable and General Ledger. It uses customer and supplier master data and can update them. It interfaces with AR and AP for billing and disbursement. Accounting is also defined for booking transactions in GL.

    Oracle Loans generates income through interest and fees. Interest is calculated based on day counts and indexes. Fees can be recurring, event-based or manual. Both interest and fees are billed and invoiced in AR. Late payment penalties can also be defined.

    Oracle Loans Lessons Learned

    February 26, 2010 (1:20 2:00 PM)

    Presented By

    Sharon Peariso
    speariso@astcorporation.com

    Rajan Mankame
    rmankame@astcorporation.com
    1

    Discussion Topics
    Oracle Loans Implementation Experiences: How Loans integrates with Financial Modules How Loans Generates Income How Loans Generates Disbursements How Dates and Schedules affect loans processing How to use loan conditions How loan approvals function How loan restructuring works How to update loans What about data conversion? Questions and Answers

    Loans Integrates with Other Modules

    Accounts Receivable
    Loans uses Customer Master file for Borrower or CoBorrower information
    Can update Customer Master files from Loans

    Loan billing program sends invoices to AR


    Invoice number same as Loan number Separate invoices for principal, fees, and interest. Reverse last bill program provided.

    Receipts application or adjustments in AR are reflected in Loans immediately.

    Loans Integrates with Other Modules

    Accounts Payable
    Loans uses Supplier Master file for Disbursements
    Can update Supplier Master files from Loans Payment need not be to borrower. Multiple disbursements are available.

    Loans sends Disbursement Invoices to AP


    Invoice number contains Loan number.

    Once payment is disbursed, the loan is updated to active status.

    Loans Integrates with Other Modules

    General Ledger
    Accounting
    Loan types are defined with accounting for booking and billing of principal and interest. Fees are defined with accounting that will be created on the invoice when fee is billed. Once a loan is active, accounting can be interfaced to GL, similar to other financial modules. Funds checking is available for federal applications.

    Loans Integrates with Other Modules

    Accounting Setup for Loan Type

    Loans Generates Income

    Fees
    Fees are defined by Administrator and can be recurring, event based, or manual. Fees can be assigned to a loan for every billing or a single billing. One receivable account is defined for use with all fees. Fee revenue accounting is unique for each fee. Fee accounting is passed to AR for fee invoice. Fees are billed at the same time as other billings. Can assign late penalties and grace periods to each loan.
    7

    Loans Generates Income

    Loans Generates Income

    Interest
    Interest calculations are based on a number of day counts. Indexes can be defined to default interest rates. Interest bills can be on a separate schedule from principal. Interest rates can be changed as of a billing date only. Interest only billing is available.
    Balloon payment

    Loans Generates Income

    10

    Loans Generates Disbursements

    Disbursements
    Made through Payments Module May be single or multiple disbursements for a loan
    Multiple disbursements may be to different suppliers.

    Billing is possible only after final disbursement.


    Loan Status becomes active.

    11

    Loans Generates Disbursements

    12

    Dates and Schedules Affect Processing

    Dates
    Origination Dates Application Date Disbursement Phase Start Date Terms Start Date Payment Start Date Maturity date is calculated based on loan term. Changing dates
    Payment start date change does not change maturity date.

    13

    Dates and Schedules Affect Processing

    Amortization Schedules
    Created automatically based upon entered loan data. Maybe downloaded, customized, and uploaded
    Customized schedule limits functionality Payoff calculation must be done manually If a manual bill is used, remaining balance of schedule must be manually updated. If loan start date changes, schedule must be manually updated. Current amortization schedule created after loan approval Incorporates billing and payment information

    14

    Dates and Schedules Affect Processing

    15

    Using Conditions

    Conditions
    Created before they are assigned to a loan Various types
    Approval, Servicing, etc.

    May be mandatory or not


    If a mandatory for approval a condition must be checked for approval process to run.

    Conditions may be added or removed from individual loans.

    16

    Using Approvals

    Approvals
    Approval steps use Oracles notification system based upon each loans class and type. Approver may approve, request information, or reject loan. Automatically generating AP invoice upon approval is optional. When approved the loan status becomes In Funding until disbursement is completed.
    When payment is disbursed, loan status becomes Active.

    17

    Using Approvals

    18

    Using Restructuring

    Restructuring using ERS (Extended Repayment Schedule)


    ERS can be used to convert AR invoices to a loan. ERS can be used to restructure loan, or loans to same borrower, by combining all loan invoices (principal, interest, and fees) into a new loan This process can capitalize interest invoices Simple extension of time with same or changed interest rate does not require this process.

    19

    Using Restructuring

    20

    Updating Loans

    Updates depend upon the loan status and field.


    Once loan is saved the Borrower Loan number, and loan type cannot be changed. (Loan type dictates accounting.)

    Loan officer can be changed on individual loan, or a process will change all of an officers loans to a new officer. This can be done at any status.

    Once loan is approved, the payment start date, interest rate on future billings, and fees can be changed. Application date, terms start date, payment frequency, amount, and term of loan cannot be changed.
    21

    Data Conversion Customer Master files should be updated first. Disbursements


    In order to achieve an active status for a loan, either disbursements or custom process can be used. If disbursements are converted, Supplier Master file must be updated before the disbursements are created.

    Consider whether to bring over history or current balance only


    Opening periods for historical information Allowing accounting flexfield values to be used that may have been end-dated The loan billing program creates one invoice at a time. Assigning a fee to a loan prior to current date

    22

    Data Conversion Tool

    23

    Data Conversion Tool

    24

    Data Conversion Tool

    25

    Data Conversion Tool

    26

    Data Conversion Tool

    27

    Data Conversion Tool

    28

    Questions and Answers


    Questions and Open Discussions

    Contact Information

    Sharon Peariso
    Email: speariso@astcorporation.com Phone:

    Rajan Mankame
    Email: rmankame@astcorporation.com Phone: For Presentation Copy Visit www.astcorporation.com/papers
    29

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